Luxury Unfiltered is a weekly column by Daniel Langer, an expert in luxury branding, hospitality and activations who was named a “Global Top 5 Luxury Key Opinion Leader” by Netbase Quid.
I am writing this column before departing to the Middle East and Asia for master classes on what luxury means today and how to build a luxury brand that is relevant for the next generation of wealthy and affluent clients.
The revelation that these iconic brands buy bags from suppliers for as little as $57 to $99, while selling them for thousands, coupled with their failure to comply with labor regulations, has ignited a firestorm of criticism across social media and in the press. This controversy underscores a critical lesson: the fragility of cultural capital in luxury.
Reports highlighted that Dior’s suppliers were paying workers as little as 1 euro per hour, forcing them to live and work in harsh conditions. The Italian court’s decision to place both brands under judicial administration has been seen as a significant step towards holding these luxury giants accountable.
Desirability depends on trust. When trust is broken, loyalty fades and shoppers, especially the best clients, will break up with a brand in no time.
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